speaker pelosi. think about that. >> another $100 million. >> thank you for joining us. >> i should say thank you to kristin taylor, who put all this together, terrific with ronald. you were great. >> thank you very much. make sure you join us tomorrow. "squawk on the street" begins right now. on a morning where his holiness, pope francis tweeting about unemployment, the market zeroing in on central banks and economic data. good morning. i'm car quintanilla with my guests, live at the stock exchange. big earnings out of gm and facebook, jobless claims falling to the lowest since 2008. euro is relative ly flat as draghi gives the ecb press conference. claims fall to the lowest level

in more than five years. in europe, ecb cutting rates for the first time in ten months. >> general motors already accelerating and zooming past expectation expectations in north america. >> and investor uncertainty not going away any time soon. >> and the battle over sprint. dish network's chairman dishes out a rebuttal to rival soft bank's comments on his proposed offer for the wireless company. futures rising one day after the 138 point sell-off on the dow. the jobless claims fell the lowest level since 2008. and the central bank cutting the key interest rate to a records low .5%, coming in light of disappointing yoeurozone econom data. i'm chuckling at a tweet you said this morning, you're old, you're jaded, you still have to

wake up and system wait to see what this bank was going to do. >> there i am watching the pregame to the ecb. where has the world come to? i'm holding onto any bit of squawk on street. it actually was pretty good. draghi said a lot of good things. he is talking about small business loans, boosting that kind of business formation. it's nothing but net opposed to the next nothing but net. i feel this is a breath of fresh air and say more importantly, there were rumors at the end of the day yesterday he would do nothing. i think that was a big part. >> really? you think that contribute to what was a very poor day yesterday for those who are positive on the markets. >> yes. i think the word came through at 2, 2:30. draghi is not on board, germans don't want this and merkel up for election and nothing will happen until november and that's

been debunked and why this market looks very strong. >> euro, before the decision was at 13150. people will be watching the currency closely to see whether the market judges his actions as aggressive or not. you call it a breath of fresh air? >> yes, i do. sometimes you have to say, value judgment good. this is something we needed. something bulsz needed. they got it. euro, i believe, this is a thesis david and i were chatting about when they were putting 17 pounds of makeup on me so i can look good despite the fact i was up at 3:00 for ecb. >> you really believe europe is turning. >> i believe it is an interesting call. >> did you see the numbers? >> not as bad. >> and out of intel, finally success out of paul otolinney. brian zann nichich.

>> anybody but otolinney. sorry. stacy sheet is a good guy. it's not fair. they need a new ceo, new blood. they have ultra book coming this fal fall. >> we will leadership more. >> and he's obviously a lifer. what happened was there was a vacuum and people have been bidding the stock up to get someone at the helm. the balance sheet is good. i wish this guy well and let's learn more about him. >> he's been the chief operating officer since 2012 of january 2012, he's been chief operating

officer. >> low-key guy. >> they obviously haven't put him out. >> only the sixth ceo in the history of intel. as we know, otellini is stepping down in a couple of weeks. >> it's gordon moore, andy grove. this is a company that's had very little turnover and very little disarray and this is another smooth transition, we just needed it. >> what was that? can you tell me what that was about? >> i was upset about that. they bought arm holdings. it would have bought them apple. >> and security? >> it was a mystery. the company had been shopped how long and no one was interested in it, a major misuse of capital. you can say cybersecurity is important. no one wants to swallow squirrel and say, i will buy the

technology of another firm, a bunch of british professors. had they bought the holdings, you'd have it at $35. >> i'm not sure how to say this man's name. krzanich. he's 52, been there since 1982. he is a long time employee of the company. >> there was talk maybe they would go outside, a surprise pick outside because the company has been stagnant. my issue it's not been stagnant. it's been there a long time. we had a lame duck in otellini. you go through succession stories, a guy says he's not going to be there and usually you have someone back in a month. >> and su succession ceos should make. >> we keep waiting for ballmer to announce his transition. >> there isn't any succession plan there. >> it points to big secession

stories. ibm and apple, there's been transitions with varying success. >> i don't buy the stock of a brand new ceo for a year because they don't know how to manage the stock. gore s goresky is the exception knowing they give him a good stock and i wouldn't say repudiate, but said, listen, there's value here and we have to make changes. he distanced himself from the previous ceo. sometimes you need to do that. that's what the avon ceo is doing. she is distancing, sherry mccoy. >> i would imagine that would be a good strategy, go in the opposite direction of poor execution. >> and people think, succession, come on! >> do they have to move in the direction of otellini.

>> the company is more broad. microsoft has moved to entertainment and device and talking about today in a piece what these new businesses means. the diversion in security shows a mistake. no one likes to admit a mistake once you've done something. if i see this new ceo say this is our direction and gives us a direction other than pc and white label cell phone, it will be well received. >> in our ear, our producer, todd, pointed out he's been there a long time. does that mean perhaps he will continue the same strategy? >> no. >> i can think of a number of different scenarios, with eisner, where that company went in a different direction. >> and johnson went in a different direction. >> he came in from the outside. i'm thinking of long-time employees. >> ron johnson. >> did you watch that i'm sorry ad out of jcp, telling consumers

what's important is not the mistake but what you learn from the mistake. >> retailing is never having to say you're sorry. when we see these ceos come in, okay, there is a team, a broad team, not like they come in. one of the things really for ron johnson, he groom broomed every connected with the old jcp. there were thousands of people who worked at the company who knew these top people versus a walmart succession who knew the next guy. i was a big fan of lee scott. that succession was magnificent and that stock has been powered by that succession. >> it's a very important responsibility for ceo towards the end of their tenure to have a well delineated plan with the board part of that who will succeed. >> i am sitting next to people who have seen the successions of greatness. walmart, costco and mcdonald's,

two other companies are handling the succession well. >> let's move to gm, posed to open at a 52 week high. the u.s. automakers reporting first quarter earnings 67 centre a share, well above wall street estimates what it would earn. gm cited improvement in its north american business. the stock is within $2 of that initial public offering price. it came public at 33. there you have it. we are slowly but surely working our way back to where the government sold a lot of shares. they still own. >> tim masich ran that disposal and didn't need to pimp the stock, it would go to a premium. dan ackerson, last friday, they would not give him his raise. you see this quarter, wait a second. he's putting it on very good footing before he retires.

i felt initially a finance guy, not a car guy. i have to tell you the cars at ford have not been able to stem the loss in europe the way gm has. this is a good quarter. >> loss down to $75 million in europe. >> very good. >> a lot of people have talked about it's almost the in verse of ford, international almost has to save this company, making huge capacity increases in china. >> china was very good. i think the japanese will lose share in china, a political issue to some degree. i think gm is a buy even at 31. >> more so than ford who hired 1,000 workers because of the f series pickup demand. >> ford u.s. is very strong. if mulally this quarter show as very good -- this quarter we're in, the same gm, you will say that stock is an $18 stock where it didn't trade years ago before

europe fell apart. >> they have refreshes on chevrolet models the second half of this year and another dozen around the world and some say the second half will be key than newer models. >> japanese crunch the yen and they're not taking share. american companies taking share. you see the ford, the kansas city, no, the ford truck has come -- the f-150 series was never really dented. but that truck is much loved. that went to $350 two years ago. i bought it used. the thing is a tank. it's a tank. you'd be surprised, david, if you got a 350, it will change your life. >> that's not going to happen any time soon. but will keep it in mind. >> your garage guy can put it higher. it has a lot of power. facebook better than

forecast, results helped by mobile ad sales accounting for 30% of facebook's advertising in qe-1 compared to 23% in the fourth quarter. last night, some guy said as long as it was over $400 million, stock would go up. it managed to hit $374 million, bold enough? >> i will be bold and say this is the best conference call of the quarter. this was an amazing quarter. let me tell you why. this is what you want to hear. you want to hear a company investing a huge amount. expenses uf 56% because they have something worth investing in. we don't want them to buyback stock, we don't want a dividend. we want growth. this company has it. 100 milli whu00 million new use. it put the end to young people don't like facebook anymore story. ad revenue up 43% year-over-y r

year-over-year. mobile, last year, mobile ad, nothing. they had zero! >> zero. >> they mentioned zero! they are doing a great job. they have lots of people who haven't even put ads in. it isegra a lot of corporations new ad strategies. instagram, 22 million when acquired, now $100 million. >> desktop ad revenue down 15. >> this is a mobile play. >> doesn't matter. desktop is not a weight around the stock? >> they're using a new strategy. you have to read through it. the not last click -- we're doing branding, not necessarily direct response. they'll get you in the store with branding. if i'm an american company and don't advertise with facebook, i'm an idiot. this thing is amazing. >> the question is how many advertisers will divert dollars to the digital side of their marketing plan. >> after this quarter -- >> when will the ocean of money

come because it hasn't. >> cost acquisition has come down. they went from a value proposition, 68% less, cheaper. yelp this morning, don't just praise facebook, yelp had a good quarter. you're seeing small businesses adopt the web. this is a rather amazing engagement story. they actually do better now on mobile. people like the news story. 60 million small businesses advertising on mobile. >> a lot of new products. >> one company. one company was dissed on the call? what company? zynga. i love their get to o quote with the exception of zynga, which hasn't been -- this guy is an understated fella, which hasn't been as awesome as everyone would hope. sandberg titan. >> people have no idea how deep the rivalries run in silicon valley.

it is a blood match out there. >> these guys are more professional than we thought. you're not wearing sandals, you're wearing a suit! >> and the tweet we talked about at the top of the show, and the big story, ing, the big boy gearing up for the second biggest ipo and $100 billion and we'll get the trade on that and talk to ceo, rodney martin. also ahead, google glass coming to up, and a look at the technology as we look at futures coming up. paper anwhat? another article that says investors could lose tens of thousands of dollars in hidden fees on their 401(k)s?! seriously? seriously. you don't believe it? search it. "401(k) hidden fees." then go to e-trade and roll over your old 401(k)s to a new e-trade retirement account. we have every type of retirement account. none of them charge annual fees

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if you're just joining us, the big news of the morning is a new ceo of intel. brian krzanich. with more on that, john joins us on the phone. good morning. sounds like he's a lifer. >> yes, he is. in a way, this is the ultimate transition for intel. they have promoted in the past to promote someone to chief operating officer and from there to ceo. that's brian krzanich. he has a bachelor's degree in

chemistry. his most important education has been at intel. here is a guy who has managed the manufacturing ability and has been for a long time and now has the most strategic advantage intel has is the semiconductor in the world, as far as intricacy and efficiency of its technology. there are a lot of questions going forward now that x 86, its chip standard is no longer the overwhelming favorite in computing with mobile being such a big change intel has largely missed. how will intel handle technology going forward? this is the guy whose best positioned to make that call, paul. >> interesting, he did run as ceo in technology and manufacturing, china strategy. >> he created the great manufacturing. if you had them sit down with apple, they could open something

apple wouldn't like. >> good to have you at this early hour out west, jon fortt about intel. don't go away. tomorrow, numbers continue to surprise. becky quick catches up with warren buffet in omaha. -ton roct doesn't raise as much as an eyebrow for these veterans of the sky. however, seeing this little beauty over international waters is enough to bring a traveler to tears. we're putting the wonder back into air travel, one innovation at a time. the new american is arriving.

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minutes from the opening bell. >> it's almost difficult for me to understand how this stock can still be better than expected after everybody raised numbers, viacom. what is the secret sauce here they can continue to have strong advertising growth especially given the fact we know online is doing so well, google. >> and the super bowl was the third most watched event in history. >> how does that work? >> it was a good quarter for cnbc, not inexplicabcredible inf ad rates. we will get some info from the boss himself. viacom was positive, 2% domestic. that got everybody excited. that was because of expectations and what we've seen on their part. for cnbc still number one network. >> how much of it is the dramas we all love? did they do a big package in europe? >> i think they continue to

deliver on any number of those. don't forget they also benefits enormously and digital streaming and the deals they've been able to do. not that they made the quarter, i'm not saying that. you can shoot stuff off to netflix. they have a great deal with netflix. >> what a great business old line media turned out to be. >> let's show some "i love lucy." >> what about the -- >> that is still going on to sell their european assets. >> and that's good? >> yes. >> and radio. one wonders. >> cnbc radio, i worked for cnbc radio a long time. it's a remarkable asset. people don't understand if you can get radio right, you can make a fortune. now this thing was at the bottom in '09. >> old line technology coming back. this was a disc drive company no

one thought could still possibly blow the doors off, yes, it did, seagate is very cheap. >> the sect largest ipo of the year will make its $1.3 billion debut on wall street. we'll bring you the company's first trade in a live interview. opening bell coming up. [ male announcer ] they say that hard work

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from td ameritrade. cnbc "squawk on the street," opening bell set to ring in about a minute's time after the s&p had its biggest one day slide since april 17th. what a week it has been between the ism, chicago mpi, adp, the fed and these worries yesterday somehow the economy is still in need of more stimulus, not less? >> we have two economies. i will give you them and put it in a pizza. domino's pizza says if you have 10 dominos you have the money to buy all the dominos you want. if you only want to own one domino, no money for you. small business versus large business says it all. >> a lot of discussion today

about some technicals, a hanging man candlestick. >> i saw that. tweeted that, carl quintanilla. >> suggesting we're at some sort of top. >> it didn't happen. ding me, it didn't happen. i find these matters to be some what worthless, some what. the hindenburg and dead man walk walki walking. >> hanging man -- >> do they talk about that at sb. there's the opening bell at the top of your screen. ing celebrating its ipo today. ticker signal is what we will talk about at the top. the senior loan fund and the draghi press conference has just concluded. he was just asked about this tweet from pope francis, which

reads like this. my thoughts turn to all who are unemployed. often as a result of a sel self-centered mindset bent on profit at any cost. >> well, there is a jesuit from south america. one of the things people were fearful of is this is vatican 2. this social, one of the things this man actually understands world economics as you would if you're from south america, where there are a lot of people unemployed. that's a bold statement and i think it will shake people up. >> draghi addressing this statement whether austerity has worked. >> ben bernanke and the pope are in agreement. it's good to put people to work. >> i guess we don't have a wide, over on the floor. charliering gan eringan, going s

american audience. >> very interesting strategy responding to soft bank. yesterday, it was the japanese day, a while ago already, came out strongly in favor of its own deal for sprint, has a timing advantage and potentially balance sheet advantage. for those who like to play event driven things say they don't believe necessarily it is still economically superior although we're still wondering about the actual dish bit. all that being said, look at these quotes from him. we are an american company and the modernization of sprint network will have to be done from the u.s. you have to climb the towers here and have u.s. employees who speak english. >> wasn't that unbelievable. >> the operations control will be in america. that's good for jobs. it doesn't mean the other guys are bad. just means we have an advantage. a little zeneca phobia. >> he says it's a national security. japan and the united states are

allies. >> he will push this. why not. i wouldn't be surprised if you start talking about world war ii. >> it was a 1938 feel. worried about the greater east asia co-prosperityies fear. >> it is a japanese company taking control of the third largest wireless company in this country. one reason it is a fascinating story and many others. that being said whether soft bank says we have the better deal. ering gen s ering -- ergene saying i have the synergy and really 4.7 times if we add clear wire instead of 6.7 times. a lot of this depends on cost synergies being cited. hard to get to them. due diligence has not yet begun for dish. we'll see what the committee of sprint's board allows them due diligence. >> have you ever seen in your

multiple years covering mpa, two people who hate each other so much? >> we don't even know they hate each other. >> this is above viacom. >> no, it doesn't. >> and you're from japan and you read this stuff, you have to be indignant. we need employees who speak english? >> he wants employees to help him conceivably carry the day. >> does zeneca phobia make you think he has real cards to play? actual real cards? >> a good question. >> the cards he has to play are good cards and has to make cogent arguments why the synergy numbers are real and why a heavily indebted company all on the sprint side can still compete effectively in a marketplace you're still building out network vision and spend an enormous amount of money. all key questions. your point is a good one. i don't have the answer.

perhaps mr. ergen will furnish it to us. >> he has a feel to this, old dish guys never die, they just fade away. >> thanks for that. >> it's an incredible interview. you don't see that too often. >> i know. the guy is saying -- >> that means they're not concerned about making investments in the u.s. the chinese are. >> chinese do it in a very different way. we're owned 25%. >> which 25% do they own? >> right here. i can't cut that out. they have voting control of me. chinese, honestly, look at the natural resources around the globe. africa, have you seen what they've done? they are such great investors, except for in china, where they do see through buildings. >> that's what they say, anyway. i haven't actually seen one myself.

a bunch of things we haven't gotten to, just briefly, you like the quarter in conjunction with what facebook said? >> i live and die by yelp. they are a dominant company in small business. talk about a mobile application, i want to have a really good mexican restaurant in cal gardens, brooklyn. right there. this is what people are using yelp for, where to eat, where to go, what inns to stay at. we ought to pay yelp for the inn i own in summit. >> you have a problem? >> no. but my restaurant in the making -- >> i see a very busy retirement for you checking people's bags. >> my dad is 90, he's still working on the side. pop, take it easy today. >> he is a good man. let's get to bob pisani on the floor watching voy a. hi, bob.

>> we're looking at 19 and a quarter. the price was $19.50. a little unusual here. they priced more shares than they anticipated, about a million more but they lowered the price. that's a little odd. one of the reasons that happened the selling c specifically stated they needed a certain amount of money. $600 million to actually make the deal work. if the people who were buying it wanted a lower price, they can get a lower price but the company had to add more shares to get to the target they needed to raise, $600 million. that's a little unusual. the price was $19.50, looking at $19.25, still hasn't quite opened yet. let's look what's happening in europe. did you see draghi, talking about the possibility of negative and positive rates for the bank. where are we at? >> $19.25. >> $19.25, draghi just opened at.

i got that. euro dropped and draghi was talking about negative interest rates with the bank. they were charging negative rates and the idea was to force them to start lending out, an interesting way to lend it out and flood the system with more loans and potentially be more inflationary and why the euro dropped. draghi was just opening at $19.25. the important thing going on, on friday's jobs report, lots of fear of the jobs report friday. most traders have been very negative in the last day or so. a lot of talk this will be the report that will make the markets cool off a little bit. the important thing here we have seen signs of weakness, the dow transports, talking about lower highs for dow transports. it peeked in march and russell 2000 peaked in march and the dow has been up so far.

and people were surprised by high profile miss like merck but a lot were up 4% on the earnings, records and the top line is weak, 1.4 answ8%. the market seems happy right now. and cigna, marriott, avis budget, cigna reported above estimates on the hmo business and raised their full year forecast. the key driver, premiums are going up. marriott on the top and bottom line, raising their room rates. avis budget beat because they're raising their rental traveler rates. and i'm a homeowner, they raised my insurance 25%. some people somewhere are definitely getting price increases through and in some cases it's going through to the bottom line. ing opening at $19.25. >> this rent a car, i can't believe it, hertz is such a

great stock. there a there's pricing in the rentals, really incredible. >> rick santelli from chicago. go ahead, rick. >> thanks. the group there nailed it. what the buzz is on the trading floor and on my phone is basically mario draghi talking about negative interest rates. just contrast the notion if you're going to leave your money resting at the ecb, we will penalize you in some way, we don't want it on the middle of the teeter-totter and want it to slide down to grease gears. our forgive pays for excess funds to be held, a bit of contrast there. as they move the rates lower, the market had some predictable movements. look at in ter day on our 10 year. here's what we were following on volatility. look at a 10 year boom deal. the low yield is 1116.

if you open this up on booms, if we close at the level it's currently trading at, an all time low year close. the euro currency has been rallying going into what was perceived to be a meeting they were at a cut rate. as you open the chart up, you can see the logical movement today even though leading up to it, there was a little bit of illogical bullishness. the effect on the dollar was above 82, after we were failing at that level, technically significant. >> thank you. the amount of things happening at this moment. the dow theory and rick has got stuff. hard to, let's say, get your arms around everything happening. let's check out the latest

moves. here's another one, energy. energy and metals to sharon. go ahead, sharon. >> there's so much going on in this marketplace as well, jim. we are looking at gold prices, $20. metals stronger across the board a corrective bounce after the sell-off we saw yesterday. keep in mind we have seen very strong metals trading activity over the last month. up about 45% from the previous month and look at what the ecb dade, telegraphed well and traders expected it and lower rate environment definitely helping precious metals and auto sales are helping platinum group metals, i should say platinum and palladium. and watching what happens in the oil market. prices selling off after the previous session getting a little bounce after the jobless claims that came out, lowest level in five years and traders looking at the brent crude market, hoping brent will stay

above the $100 barrel level, psychological level. >> and stories we brought you in the past, particularly when it comes to these activist fights. the commonwealth, where you have this fascinating battle between the port noise that control the management company for the reef itself and now the ranks have grown to include the large hedge fund, perry, luxor as well. we're talking about 19.4% of the company's common stock being accounted for by investors who have come out publicly, in recent days, in the case of perry and luxor, and said this is not sustainable. you have to give us, that being shareholders, the right to have our voices heard here. importantly, tomorrow is a hearin hearing in maryland very much

involving what will happen for shareholders who want to act by written consent to toss out the entire board of directors. if in fact that is successful, there will be potentially significant change going on for cwa. the stock itself up sharply from the lows, nonetheless, is off from the highs of recently. they did succeed doing that huge offering, if you recall. it began at the end of february. tomorrow, a key day. we may get summary judgment and we may not. it will be an important decision that is made on whether or not that consent can move forward. if it does, with at least 19% of the shareholders already out publicly. let me go to perry capital and what they had to sane their letter, where they go on to say the board will try and defend the entirety of its actions by a allege i alleging core vehicles and

related are architecting a hostile take over. this is a red herring. cwh manage. is trying to thwart. what happens afterwards whether it is a stand alone strategy to maximize value, a bid by corvet/related, or someone else is not the issue at hand. but rather shareholders will control that decision. >> people are saying, jim, why don't you talk about this as the great outrage. >> when you read it, activists not always in the right. when you look at the facts, it does support at least giving the opportunity to make their voices heard. >> excitement on the floor from ing. and coming back, talking about the $1.3 billion ipo, the second largest so far this year. [ male announcer ] you are a business pro.

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fresh from the opening bell, cnbc celebrating its opening bell is ing trading under the ticker, not ing but voya. we want to bring in the chairman and ceo, rodney martin who joins us. congratulations. >> thank you. >> we promised we would explain the voya. >> voya is a derivative or abstract of voyage. when ing de-con simultaneouses the end of 2013 we will introduce it. it's our stock ticker symbol and will continue the branding in the u.s. >> any disappointment in the way it's priced today? >> we can't control the price. we can control our execution. it's a point in a day in time. we're very focused on growing retirement investment and

insurance businesses and very optimistic about our path to go forward. >> some concerns, of course, a common question, when we get new issues, the degree to which we get the parent, the dutch parent will continue shares through 2016? >> yes. it's a very clear path of share distribution. they listed 25% today. it has to be more than 50% by the end of 2014 and 100% by '16. a very orderly path of the disposition process. >> what the heck is happening from european banks, unbelievable number from deutche banks and literally almost every bank we've seen from europe, rbs reports tomorrow. i'm hearing terrific things. there is a resurgence going on. why are these banks doing better? why? >> the perry company, i think, is well on its way in the

divestiture process of business assets and banking assets. holman has exhibited great leadership in its singular go forward path and that's why we're introducing ing today. >> you didn't say what i was hoping that perhaps there is a bottom in europe and it could be turning. >> i think there is a bottom in europe and it could be turning, yes. >> there, you got someone to say what you were hoping for. >> you cut back sharply and still dealing with some liabilities from that. explain why you stopped and what that will mean to your financial performance. >> ing stopped selling variables in 2010. but the book in runoff. we have a $42 billion book. we put enormous resources against the reserve $7.6 billion. we are focused on our statutory capital and no capital surprise for current or future shareholders. we have a very exciting story

about our go forward business excludeing our variable an nuties. we don't write nevariable annuities. >> you've gone in a different direction? >> correct. it's around our retirement business and investment business. we're the second biggest provider of retirement solutions in virtually every space of the insurance market in the u.s. >> rodney, good to see you. >> powerful story. >> amazing. >> we don't get to demographics but it will be fun to watch. >> thanks. >> rodney martin, ing u.s.

speaking of biting the dust, mastercard. >> rare miss. i have to think deep fry. this could be an opportunity. >> alcoa, debating cutting capacity. >> the world is flooded with aluminum.

they don't know what to do. not just china, russia. everyday the stock stalls. a new study. hepa ti hepatitis c. they have the cure, i think. >> good quarter from prugh. >> holy kuo, they get it right. amazing. >> we have david on tonight. this stock overreacted to the idea a drug expecting numbers back a generation was not working. what a great story that was. >> going the opposite direction, zero-sum game. >> we have david from allergen a and -- allergan and i think that stock was unfairly treated. i want to talk about the big sequester loser. i want to talk about it because a lot of people stopped talking about it. remember sequester? holy cow! thank you very much. >> when we come back, intel has chosen its next leader. we'll have the latest on the

giant chip's next ceo. and a look at google glass and we'll go behind the lenses and give you a firsthand look on the future when "squawk on the street" continues. ♪ ♪ the new blackberry z10 with blackberry hub and flick typing. built to keep you moving. see it in action at blackberry.com/z10 with the innovating and the transforming and the revolutionizing.

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welcome back to "squawk on the street." let's get the road map in the next hour. facebook's mobile push accounting for revenue in a big way, 30% of ad dollars but the street is still hesitant. mark here to weigh in on numbers. >> silicon valley weighs in on the culture. it was at a party that sandburg and mark met. >> and what can we expect from tomorrow's big jobs number? bob is here to weigh in. back to intel. brian krzanich to succeed ott tell l tell -- otellini.

m jon fortt is on the phone. >> there is a strategic advantage intel has. interesting enough, even if intel leverages that to the hilt. a lot of analysts are putting out notes intel could expand its boundary business in the years ahead, that still won't move the needle on the top line. krzanich will get calls how far to push the media tv efforts. can they really accelerate their wireless push to get integrated wireless to catch up with equ qualcomm and have to look at the broader mobile system. can they do more things with arm and apple? those are key things. this is a guy in charge of the part of intel that has been continuing to fire on all cylinders.

can he expand his track record there? >> it will be easy to make quick judgments for someone who's been with the company since '82 and saying, hey, this guy is not going to be in charge of structural change, a change in character for the company. would you warn them against making those quick judgments? >> i would warn them against that, carl. here is an example of why. intel's manufacturing business has really continued to do well. look what they've done to amd. they have really really hobbled that company. they've really taken over the pc business more than before and and unfortunate part for them is the pc business has been in decline. they almost got in the iphone. steve jobs wanted to do a job with intel but his deputies said, no, we have to go with arm. intel used to have an arm business and he was in charge of that business and they spun it

off and think what would have happened. they would be the leader of tablet chips and already worked with apple and would have had all of apple's pc business. think about that in those terms. this company has interesting directions. >> that's important insight, jon, from someone who obviously knows the company well. appreciate that, our jon fortt covering the intel story today. speaking of tech, shares of facebook trading higher after the earnings missed on the top line but beat revenue and mobile ad revenue exceeded expectations. are they on the right strategy? joining us the leading analysis and here. good to see you.

>> good to see you. >> mobile avenue, is it enough? >> there's a misconception. it doesn't matter whether it's mobile or desktop. avenues. whether to put it on desktop or mobile devices. what do we know, users are using mobile to access all things facebook and they've proven they can go from zero to this revenue. and it can work at facebook. >> is this argument we hear, the desktop business was down sequentially. that's not important? >> i don't think it is. facebook call and advertisers, where do you want to put your ads. it's not important that it -- a long as it is as effective and all indications are it is. the big urban myth is that facebook is starting to lose engagement and lose users,

especially among the 25 and unders. we actually asked them that question on the call last night. we didn't get a definitive answer. the averages is clear, dailies rose as a percentage of the month month monthlies. they needed to show that and they did show it. fundamentals are improving. >> unlike other technology companies, facebook is effectively behaving like a media or communications operation. it has this huge audience and advertising to that audience. today, you have google buying a stake in lending club, a new technology company in business areas. facebook doesn't appear to do that yet. do you think you can raise the multiple by getting them into a different way of operation orr as long as the ceo is at the hel helm, they will do what they're doing now. >> i don't think you can raise the multiple by shifting the focus, i think they're doing

what they should be doing, raising engagement for users and all users off multiple devices and carefully inserting ads into those conversations and those streams. that's fine. a lot of technology is hidden behind that. it's a media company first and foremost and running it appropriately. >> aren't there other companies more exciting for an investor like amazon and google as pushing the envelope to suck up profits in new areas. >> probably but facebook is the most well-known internet name. instagram bought this new asset. has 100 million users a tenth the size of facebook and generate no revenue off that site. none. check this out. in the next year or two you're like i to have another 10% of revenue and profits from a source already there they haven't tapped. underleverage. >> someone said they're being extremely patient with instagram in terms of monetization, are

they not? >> the mistakes that have been made on the internet in the last 15 years when people have been too aggressive in monetization they lose their users. facebook hasn't made that move yet. >> no one's talking about it getting back to the ipo price, right? >> i think it's a small buy. i think netflix has more up side. amazon google, even priceline. facebook is a small buy. 40 times earnings is what we think it can get to, 80 cents in earnings next year. >> of the names you follow, looking at the yelps of the world, another story in the news today. facebook is obviously closer to the middle of your favorite list. what stands out on the top? >> at this point given pullback in amazon shares, that's the most interesting stock. below $250, i think you can buy it. a question whether we're in a growth valley. amazon has so many different growth engines, cloud, computing, devices, it's a broad

play. >> nice to see you. >> come on more often. will. >> let's send it to david faber on the floor. >> thanks very much. we're joined by dan. nice sometimes, you're in silicon valley and we'll get you to new york. you're actually not far away. let's talk about a number of things. d dan is ceo of t-- and from the valley where zuckerberg and s d sandburg came together. let's talk about haves from the have-nots in the valley. >> you have companies more focused on the desktop, in tell, microsoft and then companies leveraging mobility, particularly in the internet space. facebo facebooks earnings up. dollars on mobility up. dollar per user up. you also see yelp up. companies really focused on

being on multiple devices being agnostic and other companies looking through the rear view mirror. >> do you think it will become more pronounced in quarters to come? >> i think it will be extremely pronounced in the next couple of years. the pc is not part of the current gwenrationeneration's v. they don't think about it. they use notebooks for college but live their life on smaller screens and aren't tethered down to anything and increased usage pretty dramatic. >> what about the advertisement itself, you're an old ad guy. >> i take exception to old. >> you're vintage. you're seasoned. >> i am. i'm nostalgic. >> the money is still not there in enormous quantities in terms of willingness to say it's all about mobile and digital.

>> it reminds me when the internet started and went to yahoo! in 2002. the ad agencies had a desire to advertise in the internet but didn't know how to do it. mobility moves so much faster than the ad companies can figure out how best to monetize it. that's a matter of time. facebook is a user that their mobility ads are up. >> i hate to use a tipping point. we've been saying it's a matter of time for what seems like a long time and still talking about old digital dimes for analog dollars. y >> you see billions of dollars on yahoo! and facebook. what's happening they're concentrating money on bigger players. the standards are easier, bigger to buy and they're effective and the world has tipped and we just

don't understand it yet. i think because it's spread out over so many places you don't see the four or five networks on television who got it all. you look at the cumulative dollars, it's tens of billions of dollars. >> that would increase substantially and that separation, some companies who haven't embraced mobile not necessarily advertising centric, it will only get bigger? >> not only advertiseding, transactions. look at the success ebay has had 10 billion going to 20 billion mobility on payments. all about mobility and untethered, leverage iing locat and always with you. companies that focus on that, they're the ones winning. >> dan rosenweig, thanks for st stopping by. simon. >> thanks very much. a big name. president obama is getting set to host a news conference during which he is likely to

nominate a new labor secretary. a female and a billionaire. i believe it's about to happen now. let's go straight to the white hous house. >> thank you. good morning, everybody. please have a seat. sit. my top priority as president is to grow the economy, create good middle class jobs, make sure that the next generation prospers. and in a few minutes, i'll be departing the white house for a trip that will promote that priority. first, i'm going to visit mexico, one of our largest economic partners. then i'll be visiting costa rica, where i'll attend a summit with central american leaders. in both instances i will be

working to deepen our economic and trade relationships across latin america that create jobs at home where they can also sell more american goods and services abroad. before i go, i have business to do. i am proud to announce that i'll be nominate iing two outstandin individuals to my cabinet who will focus on precisely these issues. over the past four years, i have tasked the secretary of commerce and trade representative opening markets and services, doubling our exports for those goods and services all in support of millions of american jobs. over those four years, ron kirk with his outstanding team at str has stood up for free trade and american businesses around the world. he a he's finalized trade with south korea, panama, colombia and

cracked down on unfair trading practices to give america a fair shot in the global economy. i could not be prouder of the work he's done and becky blank has led efforts to promote high manufacturer and tourism and it is a big portfolio and worked hard with the private sector to make sure america remains the best place in the world to do business. i could not be more thankful to ron and to becky for their outstanding service. [ applause ] >> ron couldn't be here today. many members of his team are and we're so thankful to them. becky, thank you. becky is going to be taking on a pretty good job, making sure those badgers behave up in wisconsin. we know she will be compare

leading that institution. today, i'm in a position to nominate two individuals as key members of my economic team. as i said in my state "state of union" address, when it comes to growing our economy and our middle class, we should focus on three things, number one, making sure america is a magnet for good jobs, number two, helping workers earn the skills they need to get those jobs and making sure their hard work actually leads to a decent living. both these individuals share that focus. first, i'm nominating penny pitzprer to serve as secretary of commerce. one of our most distinguished business leaders more than 25 years of finance experience including real estate, finance and hospitality. she's built companies from the ground up and knows from experience no government loan program can take the place of a great entrepreneur.

she knows what we can do is making sure every job gives americans the best possible chance to succeed and knows strengthening communities around them, strong communities and workers also help companies strive. she's been an compare civic leader in our shared hometown of chicago. she served as a member of my jobs council. she was the driving force behind skills for america's future, a program that brings together companies and community colleges to shape and prepare skills-based training programs for workers that are tied into the businesses that potentially will hire them. so she's got compare experience. in case i haven't embarrassed her enough, she's got a wonderful family. i watched her kids grow up and today is her birthday. so happy, penny. >> thank you. thank you very much.

>> for your birthday present, you get to go through confirmation. it's going to be great. meanwhile, over two decades in the public and private sectors, mike fro mman, who i'm nominati to serve as my u.s. trade representative has established himself as one of the world's foremost experts on our global economy. i'm not surprised because we went to law school together. he was much smarter than me then. he continues to be smarter than me now. over the past four years, he's been my point person at global forums, like the g8 and g-20. by the way, when i say point person, he's really been the driving force oftentimes in

organize i organizing these incredible international summits huge amount of business gets done. he's been a key negotiate alongside ron kirk on trade agreements for south korea, columbia a coluco colombia and won the respect for trading partners around the world, won a reputation for being a tough negotiator doing it and does not rest until he does the best possible deal for american businesses and workers. fought to make sure that countries that break the rulies are held accountable. mike believes as i believe and penny believes, our workers are the most competitive in the world. they deserve a level playing field. mike will continue to fight for that level playing field in his new role as he helps to move forward trade negotiations with both the asia pacific region and europe and will also continue to advise me on a broad range of

economic issues. as i think some of you have gathered, i've had a chance to get to know penny and mike not just as leaders and professionals but also as friends. one of the reasons i'm proud to nominate them, they don't forget what matters. they know this is not about just growing balance sheets, about growing opportunity for people, about growing a sense of security for the middle class, and most of all, they operate with integrity and they understand the public service is a privilege. you've got to do it right when you get involved on behalf of the american people. i just want to thank penny and mike and their compare families for agreeing to serve in these roles. i urge the senate to confirm penny and mike without delay because they've got a lot of work to do. i in tend to work them to the bone as soon as they're official. thank you very much, everybody and thanks to their families for

putting up with what i know will be challenging but ultimately the compare reward of working on behalf of the american people. thank you very much. >> so as the president prepares to leave for mexico, he nominates mike froman as the new trade secretary and penny p pritzker. a woman worth $1.8 billion, heiress to the hyatt fortune and some what controversial because they had poor labor relations. the issue now, can she reconnect business to the white house? >> that's the hope of the administration, certainly. she's somebody who had a close relationship with obama as a fund-raiser, somebody from his hometown. the labor troubles that you mentioned will probably add to her credibility in dealing with business because so of of the

suspicion that business people usually have of democrats is that they're too closed to organized labor. so that probably will help her in the confirmation fight with republicans although it makes some democrats uneasy. some people are uneasy with the whole idea of taking people who raise money for a candidate and put them in power. but i expect that she will overcome that, be confirmed and so will mike froman who has been serving the administration, as the president said, doing economic international policy. i expect, as they depart for mexico, he is likely to have a relatively smooth and low drama confirmation fight. >> interesting. despite the concerns the president expressed. thank you very much, john howard in washington. the ecb and jobs numbers tomorrow, how can you play out all the headlines. john doll next on the program. and copper hitting an 18 month

low while crude slides over 3% in just one day. are there more loss in store or is this a buying opportunity?

tomorrow is the big one, jobs friday. in advance we had big news, jobless claims falling to the lowest level since january of 2008. bob doll is the strategist for asset management. >> how are you doing? >> i'm worried whether the economy is slowing down and the fed as well. yesterday, they included the possibility they would extend qe or double down on the amount of qe they're embarking upon. in that environment, can it go higher? >> only if we get revenue growth. scarce of late. january and february done better than expected and worse in march and april. march an april, it's been more labored. if we don't get more growth, ill

will stop going up and need better economic news. why i think we don't have a big dip, pedal to the metal, fed maybe doing it longer and twe have housing that continues to improve and that has huge economic and psychological impact. i think we'll be okay. no better than that but okay. >> what about this wall of money that's gone into treasuries this month? what does that mean? >> a lot of that is the japan phenomenon, money coming out of there into japanese u.s. treasuries. some has come into the u.s. stock market but a more natural home is the u.s. treasury. >> if this accommodation is the music we're all dancing to, yesterday should have been the music like ratchet up a notch. why didn't the market dance? >> the market is struggling with

a lot of things. yesterday, are we in another whiff of deflation and deflation does not give us revenue growth i said we need. >> are we missing on revenue at the moment and stocks are not falling out of bed? >> exactly. the markets have been okay but only okay so long if revenue growth is not there. >> amazing how strong has been the ability of corporate america to cut costs. >> i think we have a generation of cf o's that should get pulitzer prices. unbelievable how to get revenue out of a stone and find cost cutting under a rock. amazing. >> i'm sorry. unless you're part of the unemployed, of course, you continue to not be taken on because of that pressure and cash flow because of dividends. >> you sound like the pope. >> a very serious to the issue, the stocks are gaining but the cost to the american public is

massive. >> and reluctant to hire workers and expand plants. what are they doing? they have a massive amount of cash, don't know what to do with it. let me raise the dividend and buy back stock. not great for the economy but the stock market. so many people want a strong economy. be wear what you ask for. a decent economy is required for the stock market but not a strong one. it brings the question, when is the fed done and inflation coming back. >> it's all about cheap money. >> it's all about the cheap money. >> that's a terrible thing to say, come on television and say, be careful what you wish for, you don't really want a strong american economy. that's a terrible thing to say. >> if your objective is to find jobs for our kids struggle to find jobs, absolutely you want a strong economy. if you want a strong stock market, at least in the near term, a good but not great

economy. has to be better than we have but not great. >> i'd like stock market instead of cf o's and ce o's, investing to grow the market. they can go in tandem. we are in the looking glass world for the moment. >> i don't disagree. i think by the end of the year, corporations will have spent a bit more money in '13 than '12, internet enough -- not enough to make you happy but in the right direction. >> thanks. >> now to josh at headquarters. >> hey there, gilya, check that out. the news a combination looks to have eliminated hepatitis c after treatment in patients of gi gi gillead. and it does give gilead a potential advantage.

now some 100% higher in the last 12 months. >> talking about the cost of energy. bob mentioned what's essentially a tax cut for everybody. crude oil, down 4% and now net gas inventories, sharon with that. hey, sharon. >> hey, carl, we saw natural gas prices that hit a fresh high in 2011 in the previous session only to lose ground. today, we're getting report from the energy department storage sh showing natural gas supplies rose by 43 qb feet and natural gas supplies in the last week, above the consensus estimate looking for a rise of 28-32 bcf according to analysts. the result is a further sell-off in natural gas prices, natural gas off by more than 15 cents right around $4.17. the fact we have below normal temperatures in texas and the southwest in the forecast is not

enough to support prices here. a lot of traders looking at the fact this build in natural gas supplies is less than the five-year average but greater than expectations and greater than what we saw year ago. still plenty of natural gas out there and nre looking at it coming off 16 cents as we speak. $14.16 is the natural gas price. thank you. >> thank you, sharon epperson. >> a look at two of the most valuable commodities of late, oil and goal. also ahead, seeing is believing. our own carl quintanilla is trying tr trying it on. you don't want to miss that. everybody has different investment objectives,

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we are a little more than an hour into trading for the stories here. 7:34 on the west coast, 10:34 on the east. aig beating expectations with earnings in north america. and shares of gm in the u.s. in its debut. the affiliate raising more than a billion dollars in its ipo, the second biggest so far this year. and the average fixed, down to 3.35, just above a record low

according to freddie mac. >> and the 10 year, fresh evidence of a global economy prompting further falls in industrial and gains in u.s. treasuries. david greeneburg is from gre greenberg capital and spent three years on the board of directors executive committee. good morning. >> how are you today? >> how worried are you about the fall of comments? when do you stop and buy? >> that's a good concept. am not worried about it because it's good for the economy. you have criude oil down in the last 13 months and copper is down, too. people tend to think falling commodity prices is a bad thing. i think it's good for the consumer. >> that may well be true but people watching investments on cnbc have made over the past

four years has been in the commodities and when people announced qe, people made a lot of money and marketing and for that constituent, what would you say. can they still make money in commodities? >> absolutely. first, there's buyers and sellers. short sellers that make money on the downside, buyers on the upside. i think what we're having here is a capitulation of all the markets. you have gold, copper, crude oil, that have come off severely. however, if you look at the year chart and gold and year chart of crude, that's come off dramatically. look at the year chart of gold, one of those commodities, if you had bought almost any time except this year, you would have done very well. gold has a better chance to make another rally if there's another world event just as crude. going forward the next couple of months, i see both gold and crude on the same plain.

until it happens, i expect it's the channel it will be in right now. >> it would be unwise to invest in them in your view? >> i'm flat. i think there's a next leg in the dip and i think we will see one more dip in gold and crude. i would be a big buyer. if you look at the range. i'm sorry. >> sorry, i didn't mean to interrupt you, as i have. as you look more broadly across the complex, what do you like to buy right now opposed to waiting for a further dip? >> right now, buy crude. it's very hard to be short crude. it's been very quiet throughout the entire world and crude has had a nice sell off the last couple of days. we might have come off a little bit as we rallied too quickly. i'd be a short term buyer of crude. you saw the bounce in the metals a couple weeks ago with a lot of

coin buying, very important for the market. short term buying, i would be a buyer include and in oil but i wouldn't hold those positions for too long. >> the other notable move is copper, at an 18 month low. is that an indicator we may be in trouble economically or would you basket it with everything else and say a low price of copper is goods for global growth and inflation? >> you're absolutely right. a paradox. the low price in copper due to the china situation is very worrisome to me, as far as global growth just period. everybody had such high expectations. when those expectations aren't met, a lot of people got very very long. what happened they basically had to dump out of their position. we have to hold over the $3 range. if we can do that, i expect we will see a bounce in a short amount of time. >> interesting conversation. thank you for your time. david greene berg of gre--

of -- greenberg of greenberg capital. >> and when we comeback, a look at the google eyeglass world. >> and names you ahave been warned about when we come back. bel below. >> it's your body again. are you trying to get your body back into beach mode? better stay hydrated and what better way than the cnbc water bottle signed by those on the street gang. treat your guests to squawk street and don't forget the #, nail the number. oh, yeah, you have to be at least 18 years of age to enter. sorry, kid. for all the official rules and details, go to our website. you have until 8:00 a.m. friday morning.

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♪ there'll be the usual presentations on research. and development. some new members of the team will be introduced. the chairman emeritus will distribute his usual wisdom. and you? well, you're the chief life officer. you just need the right professional to help you take charge. ♪

♪ ♪ >> the world's largest gathering of players in the mutual fund industry is under way in washington d.c. right now. our own tyler mathesin is at the conference that runs one of the country's oldest investment management funds. tyler. >> david, thank you very much. if there were a mt. rushmore of the mutual funds, eaton rush may be one of those. he started in the earliest days in the early 1920s and 1930s. they've been a pioneer in the early areas and a pioneer yet again on the product line tom faut

faust, the cfo will talk about. glad to have you on. >> thank you. >> i want to talk to you about what you can with the restriction you closed your best quarter. and realizing you're not known per se as an equity shop. >> it's been a good period for us. you pointed out we're on our october fiscal year and just closed our second quarter. flows for us have been strong. we will be reporting solidly positive net flows with particular strength in a couple areas. one is floating bank longs, gives people ability to earn attractive levels of interest without taking duration risk in portfolios. another couple of portfolios attractive for us emerging market equities managed by our subsidiary metric in seattle and third, variety of global income strategies run by the global income team in boston. >> why would floating bank loans not exactly higher and the fed

insuring that is not the case, why would they be popular right now? >> the concern is on the part of investors and financial advisori advisoriadvisors given the initial movement in the economy and long term interest rates, people view it as inevitable at some point in their investment horizon, things will start to move up and people talking about bond bubbles and given a need for income and people wanting to avoid duration risk, loss of principle value when rates go up, investing yield in higher rate asset has proven to be an attractive place to be. >> one of the things you are hoping to bring to market, you applied for approval to do it something called an exchange mutual fund. a twist on etf. i have to tell you, when you take something like etf and you twist it a little bit, i started to get suspicious. you have to do two things. explain to me what these funds

are and why i shouldn't be suspicious of them. >> exchange traded managed funds we think of as hybrid between mutual funds and etfs. the goal with these is to bring the benefits of active management, as traditionally practiced within mutual funds to a structure like etfs that are simple and convenient to buy and sell, simple and convenient to own in a brokerage account and provide the built-in operating efficiencies, tax efficiencies, and protections have been at the heart of success effs have a proven effective in the last years. etfs. >> they will trade minute by minute in this marketplace? >> they will trade minute by minute in the marketplace and essentially like marketplaces, it will be linked to the end of day value of the fund.

a market determined premium or discount to that day's ending value. >> it sounds like they have a little bit in common with a closed-end fund that can close with the net asset values. >> sort of right. >> sort of right. >> what's different about these versus closed end funds, similar to etfs, there is a mechanism everyday if the fund starts trading at a premium, there's a self-correcting mechanism that the fund can grow. if the fund starts trading at a discount, there's a self-correcting mechanism the fund can shrink. much more for etf than closed-end fund and if there are closed end discounts that merge there should be a way to "arbitrage" those away. >> very quickly i assume the closed end funds is more manageable than etf fund? >> in a medium. think of operate the fund two

types, paying the manager and because these are actively managed funds you should expect management fees to be similar to managed mutual fund and other costs are similar to etfs, so that the tax advantages and cost advantages here flow from the structu structure. the performance advantages we hope to achieve grow before structure advantages are based on active management. we think across a range of strategies about 50 basis points or half a percent. >> that makes a difference, a huge difference over time. i'm afraid we have to leave it there with time. the new prod is exchange traded managed funds. eat eaton vance. thank you. >> and more on the conference throughout the day on cnbc. and the nasdaq 100 hitting a fresh 12-year high. a 12-year high. back to the levels we saw in december 2000. a lot of that has to do with

apple since hit a 52-week low of $385, is up, the best part of 15, 16% and biotech, cell gegen gilead up. december 2000, you and joe kernen were on the marketing desk on "squawk box," early hours of the morning -- >> those were fun days. >> those were fun days. up next, rick santelli ways in on the interest rates at the moment and apparent lack of cut ing interest rates this week and the jobs report headlines. ♪

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welcome back to "squawk on the street." the ecb definitely made history today, lowering their rate 25 basis points three quarters of one per vent to half a percent. historic low followed by historic low yields in many matureties of sovereign paper like ten-year booms playing at

116. that is potentially charging from money sitting around. but it underscores the multispeed nature of what's going on in europe and the high water mark in terms of the german kmi has issues like look at cars and registration numbers as of late. today we had data in this country and for the most part over five-year lows on initial jobless claims. four-weekly average participating. the real issue for me continues to be correlation. we know it's better to have claims drop than rise.

and these have really taken a lot of glitter off what's largely viewed as positives with regard to job creation. now there's another issue. when we look at the trade deficit today everybody was happy including me. both imports and exports were down. how do you grow an economy? this is the way to grow an economy. the world cannot subside in developed countries with smaller pieces. if you don't grow the pie, we will all end up going oompa and acting like greece. see, that's the type of policy we need. but unfortunately current

policy, i don't have a pie, i don't like to use props twice. we have a pizza pie. the best way to understand current policy is with a little bit of humor. current policy would be like an economist walking into a rest thaunt serves pizza and saying i want a nice piece of pie. here it is. it's not cut. so the waiter says how many pieces would you like that cut into, sir? 8 or 12? and the economist thinks for a minute. 12. because i'm really hungry. that's not the right policy. carl, back to you. >> you have to show it with something visual. morgan stanley's chairman joins us back here at post 9 to sound the alarm on apple and steven cohen. it may be the first time you'll hear about both in the same story. we'll explain. you've known?

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with a letter that allows claw backs for traders or analysts who lead to criminal sanctions of any kind. this is just part of a new set of complaint procedures that founder steve cohen lays out in an investor collector this morning. cohen basically said enough is enough in terms of compliance issues that have risen and concern about the conduct. he says the firm is buffeted by the problem in recent months and years. and among other things he's imposing the claw backs. he said also senior management. he says the contact that they have the with expert networks. that have led to insider cases by the justice department will be severely limited and any contact between sac employees and public companies must be with members of investment teams

at public companies. in an interesting tone. they make the broadest and most public acknowledgment yet. he essentially says this is our problem to solve. it's my name on the door. we will solve this problem together. so very interesting to hear this tone after so much speculation. he really seems to be in front of it. >> that bit of color, as you just said, is one of the most interesting things we heard. >> thank you. >> if you're just joining us here is what you missed earlier on. welcome to hour three of "squawk on the street." here's what's happening so far. >> unfortunately with the good news for american industry that profitability is strong. bad news for those looking for

work. >> initial jobless claims dropping 18,000. >> i think the word came through between 2 and 330. the germans don't want this. up for election nothing is going to happen until november. that proved untrue. that's why the market looks very strong. >> as we are talking about intel. finally. does that sound familiar? >> yeah. i'm all in favor. >> we're very focused on growing our retirement investments and insurance businesses and very optimistic about our path going forward. >> they're being extremely patient with instagram, are today not?

>> yeah, that's right. when people are too aggressive, they lose users. facebook hasn't made the mistake yet. >> good thursday morning. let's get a check on the the market here. dow trying to get back after yesterday's slide. nasdaq is up about 28 at 3326. yelp is surging higher. climbing more than 20%. narrowing the loss from a year ago. upping the forecast more than wall street was expecting. and big announcement from intel today. the company says the coo will replace the ceo. krzanich has been with the company since 1982. his appointment will be official on the 18th.

has facebook finally figured out how to monotize mobile? along with a facebook shareholder. plus, a big red flag in apple's big bond deal. and then test driving google glasses. we've done it once. we'll try them out to see exactly what it does. we'll start with facebook trading higher after first quarters missed and beat on revenue. big jump on ad revenue. has facebook turned the quarter with the mobile strategy? just upgraded to a strong buy last week as a price target. which i would argue is on the aggressive side. are you on the street?

>> we're saying it gets to $37 in about a year off our 2014 estimates. we think it's relatively reasonable that we're expecting. >> everybody is zeroing in on this number, this mobile ad revenue number. $374 million. pretty good when you consider it was zero a year ago. >> the street was expecting roughly 3% sequential growth. advertising grew 22% sequentially. i think it's thing like mobile app installs. some of the newer formats are resonating. >> kevin landis joins us by the way. cio, also a facebook shareholder. kevin, great to see you again. your point is largely with point

to ad revenue. >> right. that's exactly right. the issues that were coming out a year ago, i mean, terrible ipo. stumbles out of the gate. people look back and try to find reasons for it. they were right. they prioritized correctly. and they are executing on it. >> we talks about home, the changes to news feed. is there a point where we are worried about costs as they continue to plow more money back into the product? >> yeah, the costs are higher this year. you are going to see some deleverage this year. it could be a 50% plus business. so we think you're taking the

right steps. we would see the margins in the future. >> kevin, people -- i've heard both sides. one is desk top is a drag. down some 15%. others say that's really not where the action is. besides you are more worried about total ad revenue. what is true? >> the migration from desk top to mobile looked like a threat a year ago. now it looks like it plays to their advantage. particularly when you bring in the idea of new facebook home. that's a great grab for that screen. and so what is great is they are on the right side of the trend. so if the trend accelerates -- >> i think we mentioned aaron's target of 37, kevin. a lot of others who were mildly bullish on the name. mark mahaney called it a smul buy with a target of 32.

when does this get back to the ipo price? >> well, forget the ipo price. the number the whole world needs to watch is # 250 because that's my cost. and that's where we need to cross. so we all frame it differently. right? so what matters not how fast they get to the ipo price. what matters is where is the stock a year from now, two years for now, five years from now. they have a great thing to build it on. the fact that human beings love to socialize. there's over a billion humans already socializing and no competitor in sight. so i wouldn't say take their type, but they can be deliberate, take the right steps and build something awesome. >> on kevin's notion there is no competitor in sight. is that true? >> there are smaller competitors out there.

the biggest is instagram which they acquired a year ago. i think it's only a matter of time. if i didn't own instagram, i would be worried about it. >> they took care of that problem. nip that had in the bud. aaron, kevin, good stuff, guys. thank you so much for kicking off the hour. >> thanks. >> thanks. >> let's bring in gary kiminski. our friend fresh off what they call the the chairman's council, right? >> yes, i was down there earlier this week where we bring our top friends to speak. talk about what they're doing with clients. i got the panel with our friends. so the major message there, much of what we have seen throughout 2013 is simple. and their clients are exercising the barbell approach.

keep the fixed income as an allocation. and gradually move into equities. which we have seen throughout 2013. take the discretionary cash, put it into stocks. no bond bubble or aggressive shift from fixed income. there is a consensus view. you can't fight the fed. you can't fight the central bank. >> you think anything changed? >> it was a definitive statement. increase or decrease. you see it in the bond market. you see it there. the take away is put the language in there. but emphasize we'll see an increase in the 85 billion before we see a decrease.

what is your take? >> it clearly tells you if there was any doubt about it the demand is there. this could have been a 100-dollar deal in terms of the orders on the book. he put up a procedure showing the percentage changes, the price changes of treasury bonds as you look at certain moves. those who bought this 10-year paper or 30-year paper had no idea what money they could lose. probably not going to hold these bonds to maturity. so you have read about it. the walkman. the vcr. a lot changes in technology in 30 years. the u.s. government can pript money. just a warning in terms of duration as well as credit risk.

12k3w4r speaking of apple and, i know you're looking at the technicals regarding facebook. >> yep, that was a great interview there. i continued to like it. pay attention to the indexes you saw last week. you saw what happened after the report because of the ov over institutional ownership. facebook, we paid attention to it. that is going to trigger technical buying here. the closet indexes which continue to drive the sort of extra buyer or seller on the stock are accumulating the stock. this is a technical facebook. then when we looked at mastercard, i forget what the stat was. 95? >> 95% closet index,

institutional ownership. it's always about the buyer. we had big news out of europe. what do you think the future is there? how much change today with their statement? we're going to continue to see easy money around the world. it is going to be how does the market absorb? i use increase and interest rates. down in jacksonville earlier this week, the conversation was, as i expected it would be, they do well in an interest rate environment. there's going to be that momentum shift the rest of the year. if you listen to that advise and did nothing else, you made a

tremendous amount of money. >> can't wait. i'll see you next thursday in vegas. >> bring pacino. want to show you a live shot of the freedom tower in downtown they are ready to put the spire on the top, which would make it the tallest building in the western hemisphere. what an engineering feat this is. whether you're interested in architecture or not. when we come back, auto nation ceo mike jackson with new data on the consumeconsumer. why americans are spending more and what that says about the economy. first, rick santelli, if that pizza is still around, will tell us something later on. >> trust me, the pizza is gone. in terms of what's coming up,

monday will be the anniversary of the flash crash. we have a guest who not only thinks he saw what occurred but we can barner a lot of information about the current debate on fht. eric scott from nanex. believe me. in 20 minutes you'll want to be there. it's the hottest topic in chicago.

the dow is two and a half

points from triple digit territory. up more than 1% today. but josh lip on the is going to be the one to tell you which. >> a nice move for quanta services today. pwr. they move in with a rise in electric power revenue. also for the guidance, raises the full year profit and revenue forecast. up nearly 30% in the past 12 months. carl, back to you? >> josh, thanks so much. auto nation, the largest auto dealer in the country releasing sales numbers today. mike, it is great to have you back on the 11. i know you have data for us. lay it on us. >> carl, good morning. great to see you. we had another excellent month and the auto recovery continues. we retail 22,500 vehicles in the

month of april. that's a 10% increase over the prior year. 7% on same store sales basis. the big leader was domestics. and led by pickuptruck sales. and you know, i've been saying for a long time that when housing kicks in and with the recovery going on in it's a very strong year for pickup truck sales. also on housing recovery i'm happy to say our big housing estates are also participating in the recovery with our estates up 10%. >> you were on it must have been three or four years ago and how poetic ford is hiring american

workers because of that truck demand. >> it's still the best selling vehicle in america. ford held the record with that vehicle for 20 plus years. and this housing recovery is real. we had a horrendous slope for six, seven years. but the stable and appreciation around america's net worth from their homes is a tremendous amount of consumer confidence. the other irony is new home starts are at a substantiate still since 2005, 2006. we now have an undersupply situation. all the contractors, the plumbers, the roofers, they all have a window into the pipeline. they see that the construction of new homes is going to resume at a very accelerated pace. i think new home starts compared to a year ago are up almost 50%.

this purpose of new pickup trucks is going to continue for the next several years. and it says the economic recovery while the rate of growth is start is more sustainable and less realistic and dment on artificial and fiscal stimulus. and more the real economy. >> finally, mike, i don't need to tell you gm is having a great day. it's up almost 4%. there's a couple of stories arguing north america argued a bit. they are hoping to help gain steam. how important will that be to the second half? >> specifically for general motors. the launch of the new silverado is crucial. pickup trucks remain the bedrock of strength.

and they've taken the strongest hit they can from the competition. and the computation tigs brought good pickup trucks to the market. but this is a segment that the domestics dominate. so for gm to be in change-over on pickup trucks to an all new truck is significant. there's all kinds of changeover issues. but another 60, 90 days they're going to be on full stream with a new pickup truck. it's going to be in the market. it's going to be quite something for them in the second half of the year. >> mike jackson also announcing the 18th mercedes benz franchise. they sell 11% of all of them. >> it's great to see you this morning. and later, get out your popcorn.

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forced to shift strategy to make more money. diana olick talked to two of them and are here to talk with us. >> you would think the investors are looking to cash out, but the ranks are only growing and so are the portfolios. they just inked a deal to buy single family rental homes. so we asked the ceo if he thought he hadn't missed the bigger bargains. >> we're just at the beginning of constitutional sponsorship. we're just at the beginning of public market for reads. you're going to have five to ten companies come out managing 5 to $10 billion worth of homes. >> now we spoke to several other large scale investors whom we have profiled to find out how they are shifting strategies in order to find more yield. justin change of colony capital in california which owns 10,000

hop homes says they're focusing on the south and west. aaron says the future will be in consolidation. as large scale investors start buying homes from mom and pop landlords, meanwhile, others are shifting away from homes all together claiming prices are too, quote, frothy. >> we've been very active in the market. we will look at other trades that don't have the same kind of high volume competition that drives up the prices. >> and one more really interesting strategy we've heard. some are looking for new construction. but they're going to builders. that could benefit the home builders. we have plenty more online.

realtycheck.cnbc.com. carl? >> diana olick with a gorgeous shot with the cherry blossoms. got more breaks news on the changes at intel. john? >> carl, just got off the phone a few minutes ago with intel chairman andy. talked to him a lot about the process that brought him to this point. really interesting tidbits here. first of all. he told me that brian teamed up with renee james, who is named president, on their bid for the c-sweep. actually threw the board for a loop a little bit. they wanted people to present individual provisions but behind the scenes they decided they were stronger together and developed their vision together. the board decided to let them do that and decided that was the strongest they heard. that's how they got their job. brian also told me external candidates were in the running for the ceo spot right until the

end. says they have a strong group of candidates. he says among the key issues the board considered when figuring out who would get the job was mobile. who presented a vision for attacking the jobs where they have not done so well? had fresh ideas. also said they're looking for something beyond an evolution but not quite a revolution to destroy the profitable business that they have in pcs. that needs to be protected. but they are looking for fresh ideas and an outsider's per perspective. >> just trying to get right that now on twitter. right now behind the scenes. thank you for that. european close coming up next. pd their own path. and never back down. who believe the american dream doesn't just happen, it's something you have to work for. ♪ we're for those kinds of people. because we're that kind of airline.

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the european markets are closing now. >> european central bank, as you know so well, was forced to cut interest rates today. most of europe was on a holiday when the s&p fell almost 1% and they haven't factored that in, so that's actually a little bit more bullish than it might appear. let me take you to slovaakia

after draghi announced they would bend and cut interest rates by 25 basis points to 50 basis points points and he rounded on his critics who said the ecb has done too little, too late when i promised to save the euro and the threat to intervene in the bond markets and therefore removed the tail risk effectively, is what he's saying, of the breakup of the euro zone, and then he said this. >> we see that stock markets wept up in germany, france, italy, spain. 22% to 38%. they went down 200 to 300 business points.

>> and sovereign debt yeets have fallen again because he also failed to rule out the possibility that the deposit rate, the rate that banks deposit cash to ecb could be cut below zero. in other words, they would have to pay to deposit money in the ecb. so effectively in the future it may force that money out of the ecb and into the economy. and this is a ten-year chart. you saw all-time record lows on yields of the core of europe. we used to worry about france and belgium and now the yields are tracking as low as treasuries here in the united states, carl. back to you.

that is amazing. >> hopefully we survive it all. rick santelli has a guest in chicago chicago talking about high frequency trading. hi. we are trying to figure out this beautiful chart. now you're an expert on high frequency trading. and you think you know what happened on may 6th, going to be three years on monday. and the chart will enlighten us. go. really it comes down to system underload. >> now this chart is demonstrating liquidity and volume and prices from may 6th,

2010. >> right. so they sent us their 6,438 trades and we looked to see where they traded. and what we found was quite enlightening. it didn't seem to match what the report said. here they only sold 1,000 contracts in this spot, yet they sold 10,000 when the market was recovering. there's more action. more volume. >> yes. so people are pulling out. not because prices are extreme, but because they don't trust the prices they're receiving. >> so you're saying it was more of a systemic problem. let's move to realtime. the cme is really under the gun. to you think it's accurate or

misguided? >> out of all the changes i would put them not on a pedestal but way on the top in terms of doing the right things. >> well, this is complicated and we are out of time. >> all right. thank you for that. let's talk about the dow up triple digits. people may be wondering why. >> yeah. it's a good question. a lot of people think the numbers tomorrow is not going to be a good one. people are lowering their estimates for a while now. so the general fear out there, still, take a look at the dow jones industrial average. we had a nice little rally. why are we doing that? >> well, the federal reserve is there, of course. now remember the new sentence put in because the traders are sending it back to me. put up the statement that reminds everybody, the committee

is prepared to increase or reduce the pace of purchases to maintain appropriate policy accommodation. okay? in other words, you think we're going to get out? maybe, but we'll also get deeper in. it's important to note the transports are outperforming the russell. all these underpossession of marijuanaed in the month of april. this is a nice sign of a bounceback with transports. i have getting worried about that also. home builders are doing well also. we have decent numbers. they said they would be profitable in the next quarter. that's helping ou overall. on the ipo front, this is the dutch housing. they had to lower the price, however, creating at $20 right now.

that's respectable given the huge amount they raised there. they were able to rise prices in their individual product categories. so hmo cig na here. premiums helped them out. avis. rental car rates were going up. someone is able to raise rates out there. i pay a lot of attention to this because i'm a traveler's customer. all of my policies are with them. they did very well. premium increases partly. my insurance went from $2,000 a year, folks. 25% increase. they sent me a brochure to explain why they were raising my premiums. put them up again. i want to show that. i want to explain why my premium is 20%.

installation was up 12. wiring was up 19. copper was up 19. this is supposed to explain why the premiums went up 20%. you can see the companies out there claiming they have to raise the prices. ul l all state, i'm calling. i'm going. the earnings squad is ready to run through some numbers. and another google blast at post 9. we'll try them out and see if it's really worth all the hype. "squawk on the street" coming right back. asuffers. it raises the price of fishmeal, cattle feed and beef. bny mellon turns insights like these into powerful investment strategies. for a university endowment.

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welcome to the earnings squad where we dissect the earnings everybody is talking about and help you can with toir tos you may have missed. cnbc's mary thompson is squatting with us. 70% of s&p companies reporting so far. 69% beat their targets. 10% met us. 21% have come in below forecast. let's start off with big earnings numbers that we're tracking this morning. yelp up 26% after forecasting second quarter revenue well above expectations. the company reporting strong results in the local and mobile

ad business. casino stocks are trading higher afteren aun expected profit. and take a look at this. this maker also giving up and citing higher cloud demand. we're also taking a look at visa trading at an all-time high. this after beating wall street estimates. you've been on the conference call. what are the highlights here? >> first of all, operatings earnings of 20% growth there. also sees a reduction in the consumer incentives. the rewards and the the rebate programs that we have. and lastly and most important for a lot of analysts watching this, we saw a growth in the u.s. debit card business. the durbin amendment caused this business to contract over the last couple of quarters to see a growth there. people are very, very excited. as you said, the stock now at a 52-week high. do they have signs of what the

consumer is like, they say it's more optimistic than the rifle mastercard. >> oh, yeah. the other day the ceo said mastercard looks dodgy. that was certainly an interest word. >> he did say housing prices are helping on the spending side as well. >> i was fascinated by the fact that there's an indication they're gaining shares from mastercard. >> in the u.s. c.c. business, that's a positive. they were strong again. it was weaker for mastercard this quarter. there's also divergence, no surprise going up in the chart and what people are willing to pay for the visas, commanding a much higher multiple. you can see in part why that is. >> i just want to know if they ever buy square. >> in massive part it has more

of a european business. for visa it's separate. it's licensed in pe. >> but visa has that in europe which explains we do have the money to pay for it if indeed it happens. they generate 2 billion to $3 billion in cash flows. soring after earnings jumped 69%. they saw demand in the home for generators. people have been hit by power outages. >> it's showing it's not a one, two or three storm that hit the wonder. the company said they're proposing a special cash dividend. they will claim to do it as at a much lower rate. the company obviously said it increased the revenue expectations. >> is the generator the new viking in the house? where you have that? it's got to be a selling point. you have a commercial business

for smaller gas stations getting financing to help them get generators. >> the stock has been here for the past six months. this gain of 10% in today's session. people are wondering whether or not -- still, you wonder if it's finally going to move higher, out of a six-month range. all right. and that is the earnings squad for today. we'll see you back here on street signs. of course. you can join the conversation. tweet me at melissa lee, cnbc, #earningssquad. e are, me and yo♪ ♪ on the road ♪ and we know that it goes on and on ♪ [ female announcer ] you're the boss of your life. in charge of making memories and keeping promises. ask your financial professional how lincoln financial can help you take charge of your future. ♪ ♪ oh, oh, all the way ♪ oh, oh

up next on the half, markets going risk on today as europe central bank joins the easy money party. but is it joins the easy money party, but is it enough to keep the rally going? jim is going to weigh in on where the marktss go from here. what are facebook shares worth? we'll ask the streets guru and get ready for a gold rally. why a noted bug is predicting a $300 move. we'll see you at the top of the hour. >> yeah, whether it's up or down. thanks a lot, scott. it is a beautiful day here in lower manhattan and we've taken the chance to show you google glass one more time here. take it for a test drive with scott stein, senior editor for c net. good to have you back. you've had it for a couple of days. >> just a few. we're going to be playing it nor

a lot more days after this. >> you've used it at home, work, even on your commute. >> it's not necessarily that there's a real invasion of privacy, but a perceived one. you wear this, people think you're robo cop, iron man or just recording something to go to youtube automatically. people don't like cameras in their face, so i felt like i wanted to take it off. but it's really not showing you much on an every day basis. you can take photos, yes, but you can get turn by turn directions, simple google searches and headlines and that's about it. you can do voice and video chat, but the rest of it is left to a future. it's not really a reality scanning device as if it can pull information and google's very aware of that. >> people have this perception that it is this sort of almost, panoramic view of data and information. it's really a square that you can shift, right? a card that goes back and forth. >> right, has a series of cards

and does connect, have blue tooth and wi-fi, i think the fear is google the very good at connecting data, saving your search history, so i think we're thinking forward to where this is going to go, company like google, plus something that looks around, i almost feel like one of those google street people. where i'm collecting data for something. >> we were discussing battery life, with a device this small, it's going to be limited. >> it is and so far, early times with this, reports saying the battery's really short. they claim it's a day, but we have the charge in just a few hours. certainly it doesn't seem like a full day device. we've had to do a lot of top ups. you're dealing with a small battery that you have to recharge. this is the challenge of wearable tech. do you want another thing to charge and how many things are you going to keep maintaining and plugging in all the time. that's the problem here. >> you think this is going to be what the quote final version

will look and as a corollary to that, are people going to want to pay $1600? >> no and no way. i feel this is a technology more than a product. i don't know if this is going to be in the future. sure next year there may be something wearable like this. you're dealing with this and the rest is just a bracket to keep on your head. we're looking at an e involved type of blue tooth headset, something that gets put in cars. this fee is for developers. the price needs to go way down into accessory territory because it doesn't replicate what's on your phone. you can't even go back and watch videos other than the ones you've shot. it's not like you can read websites or anything like this. >> can i try them on? >> sure. let me do this, get them set for you. >> one of the challenges of doing this on television is telling the viewer, showing the viewer what you see. t not easy to do. >> you tap the side of it to turn on.

>> i see the time, 11:53. now, i see our stage manager, brad here. and i guess some video that you must have shot. >> if you do this, it takes photos of anything. so now i am taking a picture of you guys. is there any way to wear this without looking like a jerk? >> no. because i think nobody because what it is. people are either incredibly curious or maybe hateful that you got it early and feel like you're being a tech elite. i feel that's okay because you're sort of part of a test project. but it, you have to sort of feel that you're a little bit of tech experiment. >> yes. but bottom line, you like it. you've used it, gone to work with it and -- you are impressed? >> i am curious about i. i think there's a lot that needs to be explored. i look add smart watches, which are exploring similar ideas. i like the idea of pop-up info if you want to be hands free. you're not always going to be hands free. if you're traveling, an

archaeologi archaeologist, a first response like a police officer, rescue team, security, there are going to be a lot of reasons why you'd want to use this. >> do you guys think i look ridiculous? sort of a mix? you guys like this? who would wear this? >> me. >> yes, show of hands. >> how many would buy? that's the other question. right now, it's $1500. >> more hands raised than i would have thought. >> people want to try it. it's like virtual reality headsets. how many would buy it, if it's 200 bucks, unfortunately, we can't. >> everybody wants a turn with this. >> everybody wants to try it. >> we're going to be here a long time, scott. thank you for coming. scott stein with c net shows off go

google glass. a lot more "squawk on the street" is back in a minute. [ male announcer ] with wells fargo advisors envision planning process,

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this is important. helping every driver and passengers. it's doing exactly what we said it would do. >> not so fast. there's the ceo hailing the app halo on this show yesterday just hours after receiving clearance to operate in new york city. now, an appeals judge is blocking the apps including halo once again after opponents including a coalition of delivery cars appealed that approval. a panel of judges is going weigh the case and make a final decision later this month, but the whole thing has taken a turn and yet another turn here in new york city. markets hanging in there. a nice triple digit gain today. want to thank our friends here on wall street from canada, st. johns. "today" show has the plaza. we have wall street, right? any way, thanks for joining us. let's get back to wap ner headquarters and the halftime.

>> thanks so much. right to the wall with four hours to go until this close and see where we stand at the lunch hour. the dow jones industrials having a great day, up 121 points. here's what we're following on the half. golden eye is the precious metal -- about face. facebook earnings are in, the stock is moving higher. is the company finding its mojo and should you buy in? first, our top story and that is the rally's next stop. stocks are rebounding nicely today. the big news of this day, the ecb cutting interest rating with mario drag gi pledging to do mo